Quantum Computing Stocks Are Falling. Should You Buy IonQ or D-Wave, or Just Stick With Nvidia?
2026-07-23 16:30
•Alex Carchidi •The Motley Fool
••••• •••• Axe Capital view
Quantum Stocks Stumble; Nvidia Still the Safer Bet
IonQ and D-Wave are down sharply, but Nvidia’s role as quantum computing’s backbone makes it a steadier play.
Quantum computing promises breakthroughs, but the hype is testing investors’ nerves. IonQ’s 37% drop and D-Wave’s 28% fall highlight the risk in betting on early-stage players reliant on unpredictable government contracts. IonQ’s revenue growth is impressive, but it still isn’t profitable, and that cash pile could dwindle quicker than expected. D-Wave’s revenue decline and heavy dependence on pending subsidies make it riskier still. For South African investors eyeing the JSE, these direct quantum plays don’t map neatly. Instead, consider tech-linked giants like Naspers or Prosus, which have exposure to global tech trends including quantum through their portfolios, though it’s indirect. Nvidia stands apart. It provides essential chips and software for quantum computing’s future, benefiting no matter which firm wins. For rand investors, Nvidia remains a core tech play to watch, especially as USD/ZAR has shown volatility that could affect tech stock returns in rands. But beware: Nvidia’s price still carries lots of expectations. If quantum takes longer to arrive or GPU demand slows, even Nvidia won’t be immune. this is just my opinion and not financial advice
I’d avoid direct quantum plays like IonQ and D-Wave for now given their shaky fundamentals. Instead, selectively watch Nvidia, or local proxies like Naspers and Prosus, for indirect exposure. Focus on USD/ZAR trends to time any entry.
- NVDA
- Naspers
- Prosus
- USD/ZAR
- Quantum tech adoption delays
- Volatile government funding for quantum startups
- USD/ZAR exchange rate swings affecting returns
6/10
Quantum computing stocks IonQ and D-Wave have experienced significant declines recently, with IonQ down 37% and D-Wave down 28% over the past month. While both companies rely heavily on federal government contracts and funding, IonQ shows stronger revenue growth ($64.7M in Q1 2026, up 755% YoY) and cash reserves ($3.1B), whereas D-Wave faces challenges with declining revenue ($2.9M in Q1 2026, down 81% YoY). Nvidia, which provides foundational GPU infrastructure for quantum computing through its NVQLink platform, is positioned as the lower-risk play that benefits regardless of which quantum company succeeds.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Alex Carchidi
Categories: Equities, Earnings, Technology, AI, Semiconductors
Tickers: IONQ, IONQ.WS, QBTS, NVDA
Sentiment: Mixed - Strong revenue growth (755% YoY) and substantial cash reserves ($3.1B) are positive, but the stock has fallen 37% recently and the company remains unprofitable with no clear timeline to profitability. Heavy reliance on government contracts and narrative-driven valuation present significant risks. Revenue declined 81% YoY to $2.9M in Q1 2026, with core business showing minimal growth. The company is highly dependent on proposed Chips Act funding that hasn't materialized as actual orders. Lower cash reserves ($588M) and lack of clear path to profitability make this a high-risk investment.
Keywords: quantum computing, stock decline, federal funding, GPU infrastructure, hybrid quantum-classical systems, revenue growth, cash reserves
Insights:
- IONQ: Neutral: Strong revenue growth (755% YoY) and substantial cash reserves ($3.1B) are positive, but the stock has fallen 37% recently and the company remains unprofitable with no clear timeline to profitability. Heavy reliance on government contracts and narrative-driven valuation present significant risks.
- IONQ.WS: Neutral: Strong revenue growth (755% YoY) and substantial cash reserves ($3.1B) are positive, but the stock has fallen 37% recently and the company remains unprofitable with no clear timeline to profitability. Heavy reliance on government contracts and narrative-driven valuation present significant risks.
- QBTS: Negative: Revenue declined 81% YoY to $2.9M in Q1 2026, with core business showing minimal growth. The company is highly dependent on proposed Chips Act funding that hasn't materialized as actual orders. Lower cash reserves ($588M) and lack of clear path to profitability make this a high-risk investment.